July 11, 2003

More Tax Breaks for Rich

And the giveaways goes on.

This is from the subscription-required BNA Daily Labor Report, so I'll post a good chuck on the article on a fat tax break for wealthy 401(k) owners in the "pension reform" bill, H.R. 1776, wending its way through Congress:

Twelve Democratic members of the House Ways and Means Committee called on other members July 9 to oppose a pension bill (H.R. 1776) expected to work its way through the House this month on the basis of one provision that would postpone the age at which tax code Section 401(k) participants and individual retirement account owners must begin taking distributions.

In a letter to other members, ranking Democrat Charles Rangel (D-N.Y.), Robert Matsui (D-Calif.), and others likened the postponement of required minimum distributions to a tax shelter and a boon to estate planning. The bill would push the age at which distributions must commence from 70 1/2 to 75.

"Changing these rules creates an additional tax break for those who need it least, and does not expand retirement security for more workers," the letter said. "Instead, it expands opportunities for high-income households to shelter their savings from taxation."

There has been an effort to push the commencement age back over the past few years, and backers of the effort have pointed to the cost of doing so as a major hurdle. H.R. 1776 would phase in the new commencement age over six years. No scoring estimate is available for the bill, but a provision in a bill from last session that would have phased in the new age more quickly would have cost more than $ 28 billion over 10 years.

So more tens of billions in tax breaks for the very rich.

Even as the GOP refuses to issue the $400 child tax credit for the millions of working poor.

Remember, it's the GOP waging class warfare, from the rich against the poor.